R445m irregular spend: officials escape discipline
SCORES of public servants who oversaw irregular expenditure at the country’s water boards to the tune of more than R445million have escaped disciplinary action.
This is according to Auditor-General Kimi Makwetu in the audited financial statements in the boards’ annual reports tabled in Parliament.
Yesterday Speaker Baleka Mbete referred the annual report to the Standing Committee on Public Accounts.
Of the eight water boards that tabled their reports, only the Overberg Water Board did not submit its financial statements within the December deadline for the second year in a row.
The audit reports showed none of the boards was immune from flouting the Public Finance Management Act and National Treasury regulations.
On Rand Water, Makwetu said he was unable to obtain sufficient appropriate audit evidence that some quotations were accepted as per legislation.
“I could not verify the processes related to the procurement of goods and services through quotations where the Intenda Solutions Suite system was utilised by the entity,” he said.
Rand Water disclosed that R117m in irregular expenditure was incurred.
“No material cases of criminal conduct have been recorded for the year,” reads its report.
Makwetu also said Bloem Water incurred R1 120 000 in irregular expenditure, which increased from R11 000 the previous year due to non-compliance.
He said effective steps were also not taken to prevent R801 000 in irregular expenditure in Magalies Water.
“Disciplinary steps were not taken against officials who had incurred and/ or permitted irregular expenditure in the prior year as required.”
But Magalies Water blamed R263112 in irregular expenditure on payments made to a service provider without order and, in some instances, after the expiry of a contract. It also blamed R10m on payments relating to contracts concluded on behalf of the Department of Water and Sanitation.
“An investigation will be done in accordance with National Treasury guidelines and action will be taken against employees who transgressed the regulation,” Magalies Water said.
The auditor-general also found that no effective steps were taken to prevent R32.9m in irregular expenditure at Umgeni Water. “The majority of the irregular expenditure disclosed in the financial statements was caused by payment of performance bonuses not made in terms of approved policy.”